Ligand Pharmaceuticals has entered into a financing agreement to provide up to $47 million to AvenCell Therapeutics, a clinical-stage company developing CAR-T therapies for cancer. The investment will support the advancement of AvenCell's clinical pipeline, and in exchange, Ligand will receive royalties on future product sales.
Key Details
- Total Financing: Ligand has committed up to $47 million, consisting of up to $41 million for royalties and up to $6 million in a Series C financing round.
- Royalty Agreement: In exchange for the $41 million investment, Ligand will receive a mid-single-digit to low-double-digit royalty on worldwide annual net sales of all current and future AvenCell pipeline assets.
- Funding Structure: The $41 million will be funded in four tranches, with the initial payment at closing and subsequent payments contingent upon AvenCell achieving predetermined clinical milestones.
- Supported Programs: The financing will help advance AvenCell's key assets, including AVC-201 for acute myeloid leukemia (AML) and AVC-203 for B-cell malignancies.